A Power of Attorney for Property is a powerful document, potentially granting the individual appointed the ability to do anything on behalf of the grantor other than make a Will. Sometimes after the execution of the Power of Attorney the grantor wants to revoke the Power of Attorney, whether due to a breakdown in the relationship with the individual to whom the Power of Attorney was granted or otherwise. Although the Substitute Decisions Act contemplates certain situations in which a Power of Attorney for Property is automatically revoked, including when the court appoints a guardian for property (section 12(1)(c)), or when the grantor executes a new Power of Attorney for Property (section 12(1)(d)), sometimes the grantor just wants to revoke the Power of Attorney without someone new taking on the role. This can be done under section 12(1)(e) of the Substitute Decisions Act.
Section 12(1)(e) of the Substitute Decisions Act contemplates that a Power of Attorney for Property can be terminated when it is “revoked”, with section 12(2) further providing that the revocation needs to be in writing and executed in the same way as the Power of Attorney for Property. The rules for the execution of a Power of Attorney for Property are governed by section 10 of the Substitute Decisions Act, and include directions including the document shall be executed in the presence of two witnesses, and that the witnesses shall not be individuals including the grantor’s spouse or partner, or the child of the grantor.
The individual revoking a Power of Attorney for Property needs to be mindful of section 13(1) of the Substitute Decisions Act, which provides any subsequent exercise of authority under the previously Power of Attorney for Property is still valid if the person acted “in good faith and without knowledge of the termination or invalidity”. As a result it is important for any individual who has revoked a Power of Attorney for Property to advise not only the person who was previously appointed as Attorney for Property of the revocation, but also any individuals or institutions who may act upon the Power of Attorney for Property (i.e. banks). There is no central registry or other place someone potentially relying upon the previous Power of Attorney can check to see if it is still valid, so it is important any place the grantor is aware may be provided with the Power of Attorney is provided with notice of the revocation.
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